Delhi HC Grants Relief To Gautam Gambhir In Cheating Case

November 18, 2024: In a significant legal development, the Delhi High Court has stayed the trial court order that had set aside the discharge of former cricketer Gautam Gambhir in a cheating case related to a real estate project. The case involves allegations that Gambhir, in his role as a brand ambassador, played a part in luring home buyers into investing in a project that later turned out to be embroiled in legal issues.

On Monday, Justice Manoj Kumar Ohri of the Delhi High Court issued the stay, effectively halting the trial court’s decision. He mentioned that he would pass a detailed order soon, with the stay continuing until then. This ruling provides Gambhir temporary relief from the legal proceedings, as the high court reviews the matter.

The case centers on the ‘Pavo Real’ housing project (originally named ‘Serra Bella’), promoted by M/S Rudra Buildwell Realty Pvt. Ltd., M/S H R Infracity Pvt. Ltd., and M/S U M Architectures and Contractors Ltd. between 2011 and 2013. Gambhir was the brand ambassador for the project and allegedly helped attract buyers who invested large sums of money (ranging from Rs 6 lakh to Rs 16 lakh each) in the flats.

However, the project’s land was caught in a legal dispute, with a stay order on the land’s possession issued by the Allahabad High Court in 2003. The complainants allege that they were misled by the advertisements and promotional material of the project, which featured Gambhir, into believing it was a legitimate investment opportunity.

In October 2023, the Rouse Avenue Court had set aside a previous discharge order granted by a Magistrate Court, which had earlier cleared Gambhir of the charges. The Special Court directed that a fresh investigation and charges be looked into, especially in relation to the Prevention of Money Laundering Act (PMLA), as the alleged cheating amount of Rs 3.5 crores was considered potentially connected to proceeds of crime.

The Special Court noted that cheating under Section 420 of the IPC is a scheduled offense under the PMLA, meaning any property derived from criminal activity connected to the offense could be considered “proceeds of crime”.

The Court raised concerns about the inadequacy of the initial investigation, especially regarding the lack of coordination with agencies tasked with investigating money laundering.

The Court remanded the matter back to the Magistrate Court, instructing a detailed fresh order specifying the charges and evidence against each accused, including Gambhir.

Gautam Gambhir’s legal team, led by senior advocates Mukul Rohatgi and Sandeep Sethi, argued that Gambhir had an unblemished record and it was common for celebrities like him to act as brand ambassadors for companies. They also highlighted the absence of direct involvement in any alleged fraud.

• The complainants, led by SK Shukla, allege that the real estate companies had lured them into investing in a project that was legally encumbered, causing financial loss. They sought legal action not only against the companies but also against Gambhir as the public face of the promotion.

While the Delhi High Court has granted a stay on the trial court’s order, the investigation will likely continue, with the matter still under scrutiny for potential violations under the PMLA. Gambhir’s legal team will await further directions from the high court regarding the charges and whether he will ultimately face trial in connection with the alleged cheating.

This case has brought increased attention to Gautam Gambhir‘s role in commercial endorsements, particularly in how celebrities could potentially be held accountable in legal matters related to fraud or misrepresentation in such cases.